Market News

Flaherty Pressures Retailers to Lower Prices

Finance Minister Jim Flaherty has urged Canadian retailers to lower their prices to reflect the strong dollar but many say they don\'t control costs. Retailers say their suppliers are charging unfair rates and they\'re in a difficult predicament. If they lower their prices to reflect the strong dollar, they\'ll lose money. But if they keep prices the same, they\'ll lose customers to the U.S. Some retailers have already started lowering prices in response to a massive consumer backlash and rise in cross-border shopping. Wal-Mart Canada has rolled back prices on about 8,000 items in the past few months, ranging from 10 to 25%, and is selling some video games at the U.S. price. Zellers has cut prices on 250 household products. "With the strength of the loonie and customer expectations climbing, there is a new standard for price leadership," said Mario Pilozzi, Wal-Mart\'s CEO. Source: Canadian Grocer E-Newsletter, Oct. 31, 2007